Days after state-owned Oil and Natural Gas Corporation (ONGC) announced that it is acquiring 51.11% stake of Hindustan Petroleum Corporation Limited (HPCL), the Congress said the whole exercise was an attempt to show that the Modi government was meeting disinvestment targets.
Missed target
“This is being done to make the balance sheet of the Government of India before Budget look alright that they have increased borrowing. Second, it is done to show that the disinvestment target is met,” said Abhishek Manu Singhvi on Monday.
Listing out the government’s own figures, the Congress said that in 2014-15, the Modi-led Central government missed its disinvestment target by 44%.
The following year (2015-16), the government’s targeted disinvestment proceeds fell short by 40%, it said.
“Now this year, technically to show that they have done some disinvestment, they have disinvested their shares in HPCL but investing into another Public Sector Unit (PSU). This is the usual Modi government style of jugglery,” said Mr. Singhvi.
The Congress spokesperson claimed that the Union government was “forcing ONGC to borrow from the market” only to show that the government could manage to keep fiscal deficit under check.
“According to a Morgan Stanley report, you are likely to have a fiscal deficit of 3.5% of the GDP overshooting the Budget estimate of 3.2% and that’s why the government wants to show it is not borrowing,” said Mr. Singhvi.
No benefit to consumers
The Congress claimed that the Modi government got a windfall gain of ₹ 6 lakh crore from taxes on petroleum products because of low international crude prices. However, it chose not to pass on the benefits to the consumer.
“As of today, the petrol price in Mumbai is about ₹ 84 a litre. We have been saying that petroleum products should be brought under Goods and Service Tax (GST) so that consumers can benefit,” said the Congress spokesperson.
